Let's see. 10% is the "average" return that most people work with when dealing with things like mutual funds and most basic medium-risk investments. Yeah, I know you can't count on it, and the economy's been sucking lately. But you can still find decent investments. This doesn't really count real estate or anything like that. Additionally, people with a bit of money have access to investments that the rest of us who aren't millionaires don't. Such as hedge funds.
I would wager that a majority of thier wealth is in stock -- especially for Gates, Allen, Bezos and the like. With the rebound in the stock market, they've seen significant increases. Particularly Bezos -- Amazon's stock has been soaring and his net worth is up more than 100%.
Plus, that 10% average return figure is bogus -- or at least has been for a few years now. Just being non-negative has been a goal for a lot of mutual funds of late. Also consider, if you have $5000 to invest, it's a lot easier to get a better percentage return that if you have $5 billion. You would need to get a decent return on every last dollar of those billions -- not an easy task, especially when a lot of it will be tied up in safe investments like bonds or cash.
Actually, the NASDAQ is up 42% year-to-date, and up 53% since this day last year. (The DJIA 16%/18%.) This alone explains the increase -- the only reason it isn't more is that it's tempered by those more conservative "safe" investments.
"Be there. Aloha."
-- Steve McGarret, _Hawaii Five-Oh_
Sounds pretty bad to me (Score:5, Insightful)
So you're telling me that in the last
Re:Sounds pretty bad to me (Score:3, Insightful)
Plus, that 10% average return figure is bogus -- or at least has been for a few years now. Just being non-negative has been a goal for a lot of mutual funds of late. Also consider, if you have $5000 to invest, it's a lot easier to get a better percentage return that if you have $5 billion. You would need to get a decent return on every last dollar of those billions -- not an easy task, especially when a lot of it will be tied up in safe investments like bonds or cash.
Re:Sounds pretty bad to me (Score:2)